BDL Intermediate Decision 13666 on the Revaluation of Fixed Assets in Regulatory Capital

On September 20^th, 2024, the Central Bank issued the intermediate decision 13666 regarding revaluation of banks’ fixed assets.  The decision allows banks to include in Common Equity Tier 1 75% of the increase in the revaluation of its fixed assets on condition:

• The Central Bank audits the revaluation and approves it.
• The revaluation must be performed before 31/12/2025.

The revaluation should be in fresh US dollars and to be written in banks’ books with its counter value in LBP as per the exchange rate set by the Central Bank on its electronic platform as per the date of paying the taxes on the reevaluation profits.

On a different note, the Central Bank also issued intermediate decisions 13668 and 13669 related to BDL circulars 158 and 166 respectively. These decisions allows clients that are already benefitting from the two circulars to receive, exceptionally and for one time only, three payments instead of one payment in October 2024 due to the needs of the clients as a result of the spread of the war. Therefore, those who are benefitting from BDL circular 158 will receive $1,200 instead of $400 or $900 instead of $300. Whereas those who are benefitting from BDL circular 166, they will receive $450 instead of $150.